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Although the share of manufacturing em- Internationally, Japanese companies are ployment declined relative to the total drawn to well-planned communities and growth, it is significant that non-durable attractive physical environments. manufacturing maintained its share of the 25% overall growth. This occurred while The fourth trend, which is well-established, the Bay Area manufacturing payroll was is the job growth resulting from the en- declining slightly by minus 0.7% between trepreneurial start-ups of small companies in 1980 and 1987. The entire state of Califor- the U.S. which have added over 18 million nia manufacturing payroll increased at an jobs in the last decade. These companies average of 0.6%per year,compared to a need "incubator" facilities in clean environ- 1.4%per year growth rate in the county. ments that are attractive to employees and Since 1980 San Joaquin County has been financing sources. one of the top six California counties in new industrial locations and plan expansions. In summary, the key locational advantages of west San Joaquin Valley are the transpor- For the future, four emerging trends bode tation network in the center of California well for employment creation within the serving the growing West Coast markets, San Joaquin County: combined with relatively low land and labor costs compared to the state's larger metro- The first is the increasing trend for Bay politan areas. In order for the county to Area manufacturers with obsolete plants on capitalize on these trends and advantages it sites having high real estate values for is extremely important that it have high alternative uses,to consider relocation to the quality alternative industrial park sites for county on lower priced land with the added the prospect. attraction of potentially lower labor costs, certainly less competition for labor and Housing Demand: easier commutes for employees. The housing demand generated by strong Another trend in the early stages is the employment growth in the eastern Bay Area relocation of distributors from the traffic and San Joaquin County cannot be satisfied congestion of the East Bay to the unclut- in the East Bay counties of Alameda and tered interstate freeways in the valley for Contra Costa. The older communities no distribution to Northern California. longer have land for major residential development and the newer communities Asian manufacturing companies are drawn have difficulty financing the infrastructure to California in increasing numbers, and the needed for residential development and are county is strategically positioned to attract promoting commercial or industrial devel- them if it has suitable high quality industrial opment in order to protect their fiscal posi- parks. An example is American Honda. tions. Regional Setting 2.4